Priya, a software engineer in Dubai, had been putting off a crucial financial decision for months.
With ₹15 lakhs sitting in her Dubai savings account earning barely 0.5%, she knew she needed to do something. Her colleague mentioned YES Bank's FD rates had recently been revised, offering up to 7% returns.
"Should I park this money in a YES Bank FD?" she wondered, scrolling through conflicting advice in NRI WhatsApp groups. Some praised YES Bank's digital banking, others warned about private bank risks.
The 7% looked attractive compared to her UAE savings rate, but she had heard horror stories about currency losses wiping out FD gains.
Sound familiar? You're probably facing the same dilemma.
What YES Bank FDs Actually Mean for NRIs
YES Bank, despite its turbulent past, has emerged as a digitally strong private bank offering competitive FD rates. But here's what most NRIs don't realize: that attractive 7.25% headline rate comes with important caveats.
The bank last revised its rates on May 30, 2024, setting the highest interest rate at 7.25% for deposits below ₹2 crore. While resident senior citizens can earn up to 7.75%, this benefit does not apply to NRE or NRO accounts..
Current YES Bank FD Interest Rates
Regular Domestic FD Rates
Fixed Deposit Interest Rates w.e.f. 30th Aug, 2025 (less than INR 3 Cr) | ||||
|---|---|---|---|---|
Tenure | Regular | Senior Citizen** | ||
Interest Rates (%P.A.)* | Annualised Yield^ | Interest Rates (%P.A.)* | Annualised Yield^ | |
7 days to 14 days | 3.25% | 3.25% | 3.75% | 3.75% |
15 days to 45 days | 3.50% | 3.50% | 4.00% | 4.00% |
46 days to 90 days | 4.50% | 4.50% | 5.00% | 5.00% |
91 days to 120 days | 4.75% | 4.75% | 5.25% | 5.25% |
121 days to 180 days | 4.75% | 4.75% | 5.25% | 5.25% |
181 days to 271 days | 6.00% | 6.14% | 6.50% | 6.66% |
272 days to \< 12 months | 6.25% | 6.40% | 6.75% | 6.92% |
12 months | 6.65% | 6.82% | 7.15% | 7.34% |
12 months 1 day \< 18 months | 6.75% | 6.92% | 7.25% | 7.45% |
18 months | 6.75% | 6.92% | 7.25% | 7.45% |
18 months 1 day \< 24 months | 7.00% | 7.19% | 7.50% | 7.71% |
24 months \< 36 months | 7.00% | 7.19% | 7.50% | 7.71% |
36 months to \< 60 months | 7.00% | 7.19% | 7.75% | 7.98% |
60 months | 6.75% | 6.92% | 7.50% | 7.71% |
60 months 1 day to \<= 120 months | 6.75% | 6.92% | 7.50% | 7.71% |
(Source: YES Bank)
YES Bank NRI FD Rates
NRE Fixed Deposits:
For deposits less than ₹3 Crore, effective from August 30, 2025.
Period | Interest Rate (p.a.) | Annualized Yield |
|---|---|---|
12 months | 6.65% | 6.82% |
12 months 1 day to \< 18 months | 6.75% | 6.92% |
18 months | 6.75% | 6.92% |
18 months 1 day to \< 24 months | 7.00% | 7.19% |
24 months to \< 36 months | 7.00% | 7.19% |
36 months to \< 60 months | 7.00% | 7.19% |
60 months | 6.75% | 6.92% |
60 months 1 day to \<= 120 months | 6.75% | 6.92% |
- Early Withdrawal Penalty: No interest is paid on NRE/FCNR/RFC Fixed Deposits closed before one year.
- Senior Citizen Rates: Extra interest for senior citizens does not apply to any NRI (NRE/NRO) fixed deposits.
- Large Deposits (₹3 Crore+): Contact the bank directly for special interest rates.
- Rate Changes: Interest rates can change at any time without warning.
- Premature Closure: If you break your FD early, the interest paid will be at the lower of either the rate for the period it was held or the original booked rate, minus any penalty.
- Minimum tenure: 1 year
- Minimum deposit: ₹10,000
NRO Fixed Deposits:
For deposits less than ₹3 Crore, effective from August 30, 2025.
Period | Interest Rate (p.a.) | Annualized Yield |
|---|---|---|
7 days to 14 days | 3.25% | 3.25% |
15 days to 45 days | 3.50% | 3.50% |
46 days to 90 days | 4.50% | 4.50% |
91 days to 120 days | 4.75% | 4.75% |
121 days to 180 days | 4.75% | 4.75% |
181 days to 271 days | 6.00% | 6.14% |
272 days to \< 12 months | 6.25% | 6.40% |
12 months | 6.65% | 6.82% |
12 months 1 day to \< 18 months | 6.75% | 6.92% |
18 months | 6.75% | 6.92% |
18 months 1 day to \< 24 months | 7.00% | 7.19% |
24 months to \< 36 months | 7.00% | 7.19% |
36 months to \< 60 months | 7.00% | 7.19% |
60 months | 6.75% | 6.92% |
60 months 1 day to \<= 120 months | 6.75% | 6.92% |
- TDS: 30% applicable (reducible with DTAA benefits)
- Minimum tenure: 7 days
Source: YES Bank NRI Interest Rates
👉 Tip: YES Bank's digital platforms make NRI account opening relatively smooth, but ensure you understand the tax implications first.
How YES Bank Stacks Up Against Competition
YES Bank has positioned itself as a tech-forward bank, but how do its offerings compare for NRIs?
Feature | YES Bank FD | ||
|---|---|---|---|
Highest Rate | 7% | 6.6% | 4.35% |
Minimum Amount | ₹10,000 | ₹1,000 | $1,000 |
Digital Experience | Excellent | Average | Modern |
Currency Risk | Yes (INR) | Yes (INR) | No (USD) |
Tax Treatment | TDS for NRO | TDS for NRO | Tax-free |
Bank Stability | Recovering | Very High | IFSC Regulated |
Source: SBI NRI interest rates ICICI - GIFT City FD Rates
👉 Tip: While YES Bank offers attractive rates, consider the currency risk. If you're earning in AED or USD, GIFT City investments might offer better risk-adjusted returns.
Key Features You Should Know
Minimum Investment and Digital Access
- Minimum deposit: ₹10,000 (higher than many PSU banks)
- Digital platforms: YES Online, YES Mobile, YES Robot (chatbot)
- Loan facility: Up to 90% of deposit value
Senior Citizen Benefits
YES Bank offers additional 0.50% p.a. for senior citizens, but this benefit doesn't apply to NRE/NRO FDs for NRIs.
Premature Withdrawal Rules
Tenure of Fixed Deposit (Completed) | Penalty Rate |
|---|---|
Less than or equal to 181 days | 0.75% |
182 days and above | 1.00% |
Recent Changes That Affect NRIs
April 2025 Rate Revision
YES Bank reduced the highest rate by 25 basis points in April 2025, with further reduction to 7.00% in June 2025. Specific changes to tenures may vary.
Digital Banking Improvements
The bank has significantly upgraded its digital platforms, making it easier for NRIs to manage accounts remotely. However, ensure you have proper documentation ready for smooth account operations.
How to Open YES Bank FD as an NRI
Online Process:
- Visit YES Bank's NRI section
- Choose between NRE/NRO based on your income source
- Complete KYC verification
- Fund transfer and FD booking
Required Documents:
- Valid passport and visa
- Overseas address proof
- PAN card for NRIs
- Employment/income proof
👉 Tip: Most NRI account opening can now be done online, but ensure you understand tax residency implications before proceeding.
Tax Implications: What You'll Actually Receive
For NRE FDs:
- Completely tax-free in India
- No TDS applicable
- Full repatriation allowed
For NRO FDs:
- 30% TDS upfront (can be reduced with DTAA)
- Interest taxable as per slab rates
- Repatriation up to $1 million annually
Real Example:
If Priya invests ₹15 lakhs in a YES Bank NRE FD at 7.00% for 2 years:
- Interest earned: ₹2,10,000
- Tax: Zero
- Net return: 7.00%
But if INR depreciates 5% against AED during this period, her real return in AED becomes approximately 1.95%.
Also Read - DTAA for NRI Bank Interest: Can You Avoid 30% TDS Legally
Risks You Must Consider
Private Bank Risk
YES Bank went through a crisis in 2020. While it has recovered, PSU banks offer higher perceived safety. Consider diversifying across banks if investing large amounts.
Currency Exposure
All YES Bank rupee FDs expose you to INR depreciation risk. Historical data shows INR has weakened against major currencies over time.
Interest Rate Risk
With RBI cutting rates, your FD returns might not keep pace with inflation or opportunity costs.
Also Read - Common Mistakes NRIs Make While Choosing an NRE Banking Account
Smart Alternatives to Consider
For Conservative Investors:
- Best NRE savings accounts with competitive rates
- GIFT City USD Fixed Deposits for currency protection
- Multiple bank FD ladder strategy
For Growth-Oriented Investors:
- Mutual funds for NRIs
- GIFT City investment funds
- Diversified international portfolio
👉 Tip: Many NRIs are now using FD laddering strategies to balance liquidity and returns while reducing interest rate risk.
Should You Choose YES Bank FD?
Choose YES Bank FD if:
- You prioritize digital banking experience
- You're comfortable with private bank risk
- You need quick, hassle-free account opening
- You prefer higher rates over absolute safety
Consider alternatives if:
- You want maximum safety (choose PSU banks)
- You're concerned about currency risk
- You need better tax-adjusted returns
- You prefer GIFT City's regulatory framework
Priya's Final Decision
After researching, Priya decided to split her investment:
- 40% in YES Bank NRE FD (for the attractive 7% rate)
- 40% in GIFT City USD FD (for currency protection)
- 20% in mutual funds (for growth potential)
This approach balanced her need for guaranteed returns with currency protection and growth opportunities.
Recent Market Updates
YES Bank's Recovery Story
The bank has shown consistent improvement in asset quality and profitability since the 2020 crisis. However, it's still rebuilding trust among depositors.
Regulatory Environment
With RBI's evolving NRI rules, ensure you stay updated on compliance requirements.
Take Action: Make an Informed Decision
YES Bank offers competitive rates and excellent digital banking, but it's not necessarily the optimal choice for every NRI's situation. The key is understanding your complete financial picture including currency exposure, tax implications, and risk tolerance.
Before committing significant funds, consider your earnings currency, repatriation needs, and long-term financial goals.
Want to discuss your specific situation?
Join our WhatsApp community where 5,000+ NRIs share real experiences about different banks and investment strategies. Get personalized advice from people who've actually navigated these decisions.
Looking for currency-protected alternatives?
Download the Belong app to explore GIFT City USD fixed deposits that eliminate currency risk while offering competitive returns.
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